Ensuring responsible disposal of waste materials and restoration of drill sites to, as much as possible, their original state and condition;

Balling and relocating trees in case drill sites are located in forested or wooded areas;

Strictly adhering to the terms and conditions of the Environmental Compliance Certificate (ECC), which is regularly monitored by a multi-partite monitoring team; and

Following good oilindustry practices

The Company also complies with relevant environmental legislation and regulations as evidenced by acquisition/renewal of pertinent permits, clearances and accreditation covering the Company’s various activities and the submissionofperiodic reports to Environmental Management Bureau (EMB).

3. Does the GOCC have a separate Corporate Social Responsibility (CSR) report/section or sustainability report/section?

4. Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights.

Does theGOCC provide contact details

via the Company's website or Annual Report which stakeholders (e.g. customers, suppliers, general public, etc.) can use to voice their concerns and/or complaints for possible violation of their rights?

6. Stakeholders including individual employee and their representative bodies, should be able to freely communicate their concerns about illegal orunethical practices to the board and their rights should not be compromised for doing this.

a. Does the GOCC have procedures for

complaints by employees concerning

illegal (including corruption) and unethical behavior?

PNOC EC has a WhistleBlowing Policy in accordance with GCG Memorandum Circular No. 2014-04, or the Whistle Blowing Policy on the GOCC Sector, among other relevant regulations, and approved by GCG.

PNOC EC released its 2016 Annual Audit Report7 days after receipt fromCOA.

AUDIT REPORT

Year

of the Report

Date Published

Date of Receipt from COA

2016

June 9, 2017

June 2, 2017

b. Is the annual report released within 90

days from release of audited financial report?

PNOC EC released its 2016 Annual Report28 days after release of its Annual Audit Report.

ANNUAL REPORT

Year

of the Report

Date

Published

Date of Receipt from COA

2016

June 30, 2017

June 2, 2017

c. Is the true and fairness/fair

representation of the annual financial

statement/reports affirmed by the

board of directors and/or the relevant

officers of the company?

The true and fair representation of the annual financial statements/reports is affirmed in the Statement of Management Responsibility signedby the President and CEO and the VP for Management Services/CFO.

The Board reviewed the Company’s Strategy Map and Performance Scorecard during the Board meeting held on January 12, 2016.Further, the Board likewise oversaw implementation of the corporate strategy through Management reports presented during the Strategic Planning Sessions held on February 2, 2016, March 29, 2016, April 12 and 26, 2016, May 12, 2016, and June 14, 2016.

b.Does the Board of Directors

monitor/oversee the implementation

of the corporate strategy?

PNOC EC holds an annual strategic planning workshop attended by members of the Board and Management, where the Company’s corporate vision and mission/strategy are deliberated on.

12. Did the GOCC achieve 90% in the PES?

PNOC EC achieved 90.93% in its 2016 Performance Scorecard subject to final validation by the GCG.

The Nomination, Remuneration, Education and Employee Welfare Committee did not meet in 2016.

16. If yes, is the report of the Nomination and

Compensation/Remuneration Committee publicly disclosed?

Not applicable

17. Does the Board appoint anAudit Committee?

PNOC EC formally combined the Audit Committee and Risk Management Committee into theAudit and Risk Management Committee pursuant to Section 16.6 of the GCG Code of Corporate Governance, as well as Section 3.15(f) of the PNOC EC Manual of Corporate Governance.

In 2016, the PNOC EC Audit and Risk Management Committee was composed of the following:

PNOC EC formally combined the Audit Committee and Risk Management Committee into theAudit and Risk Management Committee pursuant toSection 16.6 of the GCG Code of Corporate Governance, as well as Section 3.15(f) of the PNOC EC Manual of Corporate Governance.

In 2016, the PNOC EC Audit and Risk Management Committee was composed of the following:

a. Does the company disclose the internal control procedures/risk management systems it has in place?

PNOC EC ensures the integrity of the accounting and financialreporting system. The PNOC EC Board is responsible in assuring that the financial and operational controls are in place and working throughout the organization. Refer toPNOC EC 2015 Annual Report,page 53, Financial Risk and Capital Management.

b. Does the Annual Report disclose that the Board of Directors has overseen a review of the company's material controls (including operational, financial and compliance controls) and risk management systems?

For 2016, PNOC EC’s Chairman of the Board was the late Gemiliano C. Lopez, Jr.; while the President and CEO has been Pedro A. Aquino, Jr.

29. Board of Directors Development

a. Does theGOCC have orientation programs for new Directors?

The Office of the Corporate Secretary holds an orientation session for new directors, covering the following topics: (1) Company overview; (2) Role of PNOC EC Board of Directors; and (3) PNOC ECOperations.

b. Does the GOCC have a policy that encourages Directors to attend on-going or continuous professional education programmes?